GTHT Securities has released a research report maintaining an "Overweight" rating on 361 DEGREES (01361), with a corresponding target price of HK$6.83. The company focuses on the mass professional sports sector and has led the industry in sales growth since the beginning of the year. Furthermore, the company is rooted in technological innovation, with continuous product iteration and upgrades, ongoing optimization of its channel structure, and the rapid expansion of its new Super Products Store format. The firm forecasts net profit attributable to parents for 2025-2027 to be 1.27/1.40/1.56 billion yuan, corresponding to P/E ratios of 8.5X/7.7X/6.9X, and assigns a 2025 P/E of 10X. The main views of GTHT Securities are as follows:

Sales in Q4 2025 grew steadily. In Q4 2025, offline sales for the main brand/online sales for the main brand/children's wear sales increased by approximately 10%/high double-digits/10% year-on-year, respectively. Compared with Q3 2025 (which saw year-on-year growth of approximately 10%/20%/10%, respectively), online sales for the main brand slowed slightly, but overall sales growth remained relatively robust and impressive.

Super Products Stores exceeded the full-year store opening target, and ONEWAY's operations met expectations, with store opening plans for 2026. As of the end of December 2025, 361 DEGREES had opened 126 Super Products Stores, including 21 children's wear stores, exceeding the annual target of 100 stores set at the beginning of 2025. In Q2/Q3/Q4 2025, 39/44/33 Super Products Stores were opened, respectively, and the firm expects the net store opening plan for 2026 to remain. Operations for the outdoor brand ONEWAY met expectations, with a total of 6 stores currently open; the firm anticipates ONEWAY also has store expansion plans for 2026.

Continued investment in mind-share products and professional events. On the product front, the top-tier carbon running shoes Feiran 5 and 5Future have been launched, while basketball shoes such as the Jokic Joker2 and Aaron Gordon AG6 have been released, with the global launch at the Denver, USA home court receiving positive feedback. In terms of events, the brand successfully hosted the No.3 Track 10KM Speed Final, sponsored the Tangshan Marathon and Fuzhou Marathon, and became the official supplier for the WTCC intercontinental tennis tournament for the first time; the firm expects tennis shoes to be launched in Q3 2026.

Risk warnings include a deterioration in the retail environment, intensifying industry competition, and a worsening of brand partnership relations.